Coronavirus Huge Impact on Property Markets

Swagat Vyas, Managing Director of  Vishwanath Builders speaks about the Gujarat real estate’s challenges and potential.   What are some of the steps the state government can take to help revive the housing market? The steps include relaxation from banks and NBFC for construction finance benefits in term of direct/indirect taxes, decreasing the red tapeism in approval of projects, relaxation of some norms for time being The developers are having the extra burden of cost due to lack of construction workers also the time value of project is being incurred for the delay. As of now, gradually the agencies are coming and the critical parts construction are getting complete.. Also the grade A developers are not compromising on quality by getting labour from other local sources.   What are the short term and long-term impacts of the pandemic on Gujarat real estate? The short term impacts would include Liquidity Crunch amongst all asset classes’ Weak construction Activity and allied sectors, low demand of luxurious and ultra-luxurious residential segments. Long term impacts include sizing or houses with people preferring to live in bigger size apartments, requirements of work from home space in apartments, also people preferring balconies and open spaces, high quality maintenance facility management agencies.   What are some of the measures that can help bring investments into Gujarat real estate? The measures include reducing the state taxes, Good infrastructure, benefits from state government regarding other cess and allowance of more SEZ, etc.   Will the recently announced ARHC be a game changer? ARHC is good move, the developer community has availed the decision, it will not only make the laborers accessible but also reduce the burden on developer of transportation and accommodation.   How has your company been managing the sales in the current scenario? The company is focusing on digital platforms and pushing through ATL, BTL marketing channels, also the company has flexible payment plans with 80% payment on possession.  We are also making on requirement site visits with the necessary site visits with precautions.